SportsHero (ASX: SHO) has reported early subscriber growth for its recently launched HeroPlay mobile casual gaming platform in Indonesia, confirming strong consumer appetite for the product.
Revenue is already starting to materialise, with average daily subscriber sign-ups of approximately 280 to 300 during an initial seven-day test period.
Initial marketing performance across paid and telco channels is outperforming industry benchmarks, including a click-through rate of 3.87% via Meta compared to a 1.3% benchmark, supporting confidence in the scalability of the acquisition model.
Over the coming months, the company will focus on expanding distribution through existing telco partnerships, optimising retention mechanics, and selectively scaling acquisition channels.
Revenue Model Takes Shape
SportsHero expects gross subscription value per subscriber to average between 40,000 and 75,000 Indonesian rupiah per month, depending on the mix of daily, weekly, or monthly options subscribers choose.
The company anticipates final margins after paying away partner share of revenue and other platform costs to range between 35% and 85%, depending on subscribers' choice of channel partner and payment method.
Conversion rates have improved following the integration of WhatsApp authentication, which simplifies sign-up and payment flows for Indonesian users.
Chief executive officer Tom Lapping said the company is only starting to scratch the surface with these early results.
"The plan is to now dial up the marketing and expand our distribution channels, which – based on this testing – should convert into substantial recurring revenue for the company," he said.
Indosat Partnership Providing Scale
A core pillar of the HeroPlay strategy is its partnership with Indosat, Indonesia's second largest telecommunications operator with approximately 98.8 million customer accounts.
The partnership provides access to multiple high-value distribution channels within the Indosat ecosystem, including SMS broadcast marketing and free trial promotions, banner placement, and an exclusive landing page within the IM3 app.
Management is focused on building a durable growth engine by expanding and optimising the HeroPlay game catalogue to feature a compelling mix of premium, casual and family-friendly titles suited to Indonesian audiences, alongside enhancing engagement mechanics such as leaderboards, competitions, and rewards.
Current active channels are delivering competitive performance metrics, with Indosat SMS marketing achieving a 1.16% click-through rate compared with the average of around 0.5%.
With 148 million active gamers, Indonesia is the largest gaming market in Southeast Asia.
More than 83% of Indonesian gamers play on smartphones—compared to 34% on PCs and 21% on consoles—making mobile gaming the primary growth driver, generating around $1.38 billion annually, compared to $270 million for PC and $134 million for consoles.
